A judge released Mr. Yarber on $200 bail. He is to return to court Oct. 11 for a pretrial hearing.

On Aug. 29, George Nanigian filed a complaint that his identity, signature, Social Security number and driver's license were used to obtain a bank loan and vehicle for another person, according to the police report by Trooper Richard H. Frigon of the Sturbridge barracks.

Troopers Frigon and John Hanna went to Knight Automotive to check dealership records for the vehicle in question, a 2007 Dodge truck. The transaction for the Dodge began on July 1. The report said this and possibly other transactions involving Mr. Yarber were illegal.

Mr. Yarber was listed as the salesman; the owner's son, Jason Pietrzak, approved the sale, state police said.

Investigators noted inconsistencies in what were purported to be Mr. Nanigian's signatures on files at the business.

When questioned by state police, Mr. Yarber at first said Mr. Nanigian and Charles Bowes were present in his office to sign the papers for the truck, state police said.

Then he allegedly retracted that, saying he went to Mr. Nanigian's house to obtain his signatures, and he had used photocopies of his license he had on file, the report said.

Trooper Frigon placed Mr. Yarber under arrest.

During a phone interview, Mr. Yarber said he is an independent wholesaler who did not work for Knight Automotive. He denied the fraud allegation.

Mr. Yarber said he and Mr. Nanigian have known each other for 20 years, and Mr. Nanigian had worked for him as a runner.

Mr. Nanigian did not return a phone message left on a listed number. Mr. Bowes could not be reached.

Chester Pietrzak, the semi-retired owner the former Chevrolet dealership, said he does not know Mr. Yarber and he was never an employee. The owner said his son knows Mr. Yarber as one of dozens of wholesalers who constantly buy and sell automobiles.

Knight Automotive is part of a program that registers new cars; the alleged perpetrator didn't have the vehicle in question registered or insured on the premises of Knight Automotive, the owner said.

"If (fraud) went on, it was somewhere else and it had nothing to do with us, that's for sure," Chester Pietrzak said.